HC Deb 22 May 1968 vol 765 cc514-6
12. Mr. Dewar

asked the Secretary of State for Scotland how he proposes to apply the ceiling on increases in local authority housing rents in Scotland; and whether he will fix a limit below 7s. 6d., in view of the fact that such an increase would represent a much higher proportional rise in Scotland than in England.

46. Mr. Adam Hunter

asked the Secretary of State for Scotland what special action he proposes to take on local authority rents; and if he will make a statement.

Dr. Dickson Mabon

My right hon. Friend the Minister of Housing and Local Government announced on 25th April that we will not normally accept increases in average standard rents exceeding 7s. 6d. a week in any one year, which was the upper limit recommended by the National Board for Prices and Incomes. This does not mean, of course, that rent increases of this order will be generally acceptable, and my right hon. Friend told local authorities that they will be expected to restrict increases to what is needed to meet increased costs or to bring down unduly high rate fund contributions.

Mr. Dewar

My hon. Friend will, of course, bear in mind that there is a different rent structure in Scotland from that in England and a different wages structure in many industries. Would he, therefore, bear in mind that a 7s. 6d. increase would be a very high proportional rise in many parts of Scotland, and possibly an unjust one? Would he remember that it is, indeed, a maximum of 7s. 6d.?

Dr. Mabon

Yes, Sir, I agree with everything my hon. Friend has said. However, although the proportional increase could be very substantial, it is the actual increase which counts for the tenant, and this is one of the many factors which we must weigh together. That is why the discussions which we are to have with the local authority associations are so important.

Mr. Hunter

Would my hon. Friend not agree that there are many council tenants in Scotland living in areas of high unemployment and low wage rates who would find it difficult to pay weekly rent increases of 7s. 6d.?

Dr. Mabon

I accept that, and we must bear in mind all the factors surrounding each case.

Mr. Bruce-Gardyne

But would the hon. Gentleman not agree that it is very striking that four out of five of the burghs with the lowest contribution from rents to historic cost examined by the Prices and Incomes Board are in Scotland? Does this not suggest that the need is for a speedier move towards recovery of historic costs and not a slower move?

Dr. Mabon

The hon. Gentleman is misinformed. Four of the local authorities referred are in Scotland—[Interruption.]—with respect, he said that there were four out of five of those referred. In fact, the Minister of Housing referred considerably—[Interruption.] Well, I misunderstood the hon. Gentleman, or he did not say it properly. In fact, the increases proposed by four local authorities, including one in his own constituency, are the subject of discussions, and we will take the appropriate action on these.